US Treasury yields hit their lowest levels this year as investors breathed a sigh of relief after President Donald Trump announced plans to delay tariffs on China, opting instead to target Mexico and Canada in the coming months. This move boosted inflation expectations but ultimately led to a rally in government bonds, pushing down yields to historic lows. Stocks also rose, with the dollar regaining its stability amidst the optimism in financial markets.
Source: https://www.bloomberg.com/news/articles/2025-01-21/treasuries-rally-on-first-trading-day-under-trump-presidency